Management Info & Control System

A solution of Mid Suggestions

Prepared by Super-8

Chapter 1
Information in Business Systems Today

Question: a) Describe how information systems have changed the way business operate
their products and services. Marks: 4/5

Solution: It’s not business as usual in the global economy anymore. Information systems
and technologies are transforming the global business environment. Changes in
technology and new, innovative business models have transformed social life and
business practices.
IT Innovations: A continuing stream of information technology innovations is
transforming the traditional business world. Examples include the emergence of cloud
computing, the growth of a mobile digital business platform based on smartphones and
tablet computers, big data, business analytics, and the use of social networks by managers
to achieve business objectives.

New Business Models: For instance, the emergence of online video services like Netflix
for streaming, Apple iTunes, Amazon, and many others for downloading video has
forever changed how premium video is distributed and even created. Netflix in 2016
attracted more than 75 million subscribers worldwide to what it calls the “Internet TV”
revolution.

E-commerce Expanding: E-commerce is changing how firms design, produce, and

deliver their products and services. E-commerce has reinvented itself again, disrupting
the traditional marketing and advertising industry and putting major media and content
firms in jeopardy. Facebook and other social networking sites such as YouTube, Twitter,
and Tumblr along with Netflix, Apple Beats music service, and many other media firms
exemplify the new face of e-commerce in the twenty-first century.

Management Changes: The management of business firms has changed: With new
mobile smartphones, high-speed wireless Wi-Fi networks, and tablets, remote salespeople
on the road are only seconds away from their managers’ questions and oversight.
Changes in Firms and Organizations: Compared to industrial organizations of the
previous century, new fast-growing twenty-first-century business firms put less emphasis
on hierarchy and structure and more emphasis on employees taking on multiple roles and
tasks and collaborating with others on a team.

Question: b) Define an information system and describe four activities/functions of

information system. Marks: 7/8

Solution:

Information: An information system can be defined technically as a set of interrelated

components that collect (or retrieve), process, store, and distribute information to support
decision making and control in an organization. In addition to supporting decision
making, coordination, and control, information systems may also help managers and
workers analyze problems, visualize complex subjects, and create new products.

Four activities of information system

Activities in an information system produce the information that organizations need to
make decisions, control operations, analyze problems, and create new products or
services.

Input: Input captures or collects raw data from within the organization or from its
external environment.

Processing: Processing converts this raw input into a meaningful form. Raw data from a
supermarket checkout counter can be processed and organized to produce meaningful
information, such as the total unit sales of dish detergent or the total sales revenue from
dish detergent for a specific store or sales territory.

Output: Output transfers the processed information to the people who will use it or to the
activities for which it will be used.

Feedback: Information systems also require feedback, which is output that is returned to
appropriate members of the organization to help them evaluate or correct the input stage.
  This figure must be given to score good marks.

Question: C) What academic disciplines are used to study information systems

and how does each contribute to an understanding of information systems?

Solution:
The study of information systems is a multidisciplinary field. No single theory or
perspective dominates. In general, the field can be divided into technical and behavioral
approaches. Information systems are sociotechnical systems. Though they are composed
of machines, devices, and “hard” physical technology, they require substantial social,
organizational, and intellectual investments to make them work properly.

Technical approach: The technical approach to information systems emphasizes

mathematically based models to study information systems as well as the physical
technology and formal capabilities of these systems. The disciplines that contribute to the
technical approach are computer science, management science, and operations research.

Computer science is concerned with establishing theories of computability,

methods of computation, and methods of efficient data storage and access. Management
science emphasizes the development of models for decision-making and management
practices. Operations research focuses on mathematical techniques for optimizing
selected parameters of organizations, such as transportation, inventory control, and
transaction costs.

Behavioral approaches: An important part of the information systems field is

concerned with behavioral issues that arise in the development and long-term
maintenance of information systems. Issues such as strategic business integration, design,
implementation, utilization, and management cannot be explored usefully with the
models used in the technical approach. Other behavioral disciplines contribute important
concepts and methods. For instance, sociologists study information systems with an eye
toward how groups and organizations shape the development of systems and also how
systems affect individuals, groups, and organizations. Psychologists study information
systems with an interest in how human decision makers perceive and use formal
information. Economists study information systems with an interest in understanding the
production of digital goods, the dynamics of digital markets, and how new information
systems change the control and cost structures within the firm. The behavioral approach
does not ignore technology. Indeed, information systems technology is often the stimulus
for a behavioral problem or issue. But the focus of this approach is generally not on
technical solutions. Instead, it concentrates on changes in attitudes, management and
organizational policy, and behavior.

 This figure is not mandatory but will carry a good mark.

Chapter-2
Global E- Business and Collaboration

Question: a) Short Notes:

Supply chain management system: Supply Chain Management Systems Firms

use supply chain management (SCM) systems to help manage relationships with their
suppliers. These systems help suppliers, purchasing firms, distributors, and logistics
companies share information about orders, production, inventory levels, and delivery of
products and services so they can source, produce, and deliver goods and services
efficiently. The ultimate objective is to get the right amount of their products from their
source to their point of consumption in the least amount of time and at the lowest cost.
These systems increase firm profitability by lowering the costs of moving and making
products and by enabling managers to make better decisions about how to organize and
schedule sourcing, production, and distribution.

Customer relationship management system: Customer Relationship

Management Systems Firms use customer relationship management (CRM) systems to
help manage their relationships with their customers. CRM systems provide information
to coordinate all of the business processes that deal with customers in sales, marketing,
and service to optimize revenue, customer satisfaction, and customer retention. This
information helps firms identify, attract, and retain the most profitable customers; provide
better service to existing customers; and increase sales.

Knowledge management system Knowledge Management Systems Some firms

perform better than others because they have better knowledge about how to create,
produce, and deliver products and services. This firm knowledge is unique, is difficult to
imitate, and can be leveraged into long-term strategic benefits. Knowledge management
systems (KMS) enable organizations to better manage processes for capturing and
applying knowledge and expertise. These systems collect all relevant knowledge and
experience in the firm and make it available wherever and whenever it is needed to
improve business processes and management decisions. They also link the firm to
external sources of knowledge.

Enterprise system Enterprise systems help firms respond rapidly to customer

requests for information or products. Because the system integrates order, manufacturing,
and delivery data, manufacturing is better informed about producing only what customers
have ordered, procuring exactly the right number of components or raw materials to fill
actual orders, staging production, and minimizing the time that components or finished
products are in inventory.
 E-Business, E-commerce and E-Government: Electronic business, or e-
business, refers to the use of digital technology and the Internet to execute the major
business processes in the enterprise. E-business includes activities for the internal
management of the firm and for coordination with suppliers and other business partners.
It also includes electronic commerce, or e-commerce. E-government refers to the
application of the Internet and networking technologies to digitally enable government
and public sector agencies’ relationships with citizens, businesses, and other arms of
government.

Question: b) What is collaboration? Why are systems for collaboration and social
business so important?

Solution:
Collaboration is working with others to achieve shared and explicit goals.
Collaboration focuses on task or mission accomplishment and usually takes place in a
business or other organization and between businesses. You collaborate with a colleague
in Tokyo having expertise on a topic about which you know nothing. You collaborate
with many colleagues in publishing a company blog. If you’re in a law firm, you
collaborate with accountants in an accounting firm in servicing the needs of a client with
tax problems.
Collaboration and teamwork are more important today than ever for a variety of
reasons.

Changing nature of work: The nature of work has changed from factory
manufacturing and pre-computer office work where each stage in the production process
occurred independently of one another and was coordinated by supervisors. Work was
organized into silos. Within a silo, work passed from one machine tool station to another,
from one desktop to another, until the finished product was completed.

Growth of professional work: “Interaction” jobs tend to be professional jobs in

the service sector that require close coordination and collaboration. Professional jobs
require substantial education and the sharing of information and opinions to get work
done.

Changing organization of the firm: For most of the industrial age, managers
organized work in a hierarchical fashion. Orders came down the hierarchy, and responses
moved back up the hierarchy. Today, work is organized into groups and teams, and the
members are expected to develop their own methods for accomplishing the task.

Changing scope of the firm: The work of the firm has changed from a single
location to multiple locations—offices or factories throughout a region, a nation, or even
around the globe.
 Emphasis on innovation: Although we tend to attribute innovations in business
and science to great individuals, these great individuals are most likely working with a
team of brilliant colleagues.

Changing culture of work and business: Most research on collaboration

supports the notion that diverse teams produce better outputs faster than individuals
working on their own. Popular notions of the crowd (“crowdsourcing” and the “wisdom
of crowds”) also provide cultural support for collaboration and teamwork.

Question: c) Tools and technologies for collaboration and Social business?

Solution: A collaborative, team-oriented culture won’t produce benefits without

information systems in place to enable collaboration and social business. Currently there
are hundreds of tools designed to deal with the fact that, in order to succeed in our jobs,
we are all much more dependent on one another, our fellow employees, customers,
suppliers, and managers.

E-mail and Instant Messaging (IM) E-mail and instant messaging (including text
messaging) have been major communication and collaboration tools for interaction jobs.
Their software operates on computers, mobile phones, and other wireless devices and
includes features for sharing files as well as transmitting messages.

Wikis are a type of website that makes it easy for users to contribute and edit text
content and graphics without any knowledge of web page development or programming
techniques. The most well-known wiki is Wikipedia, the largest collaboratively edited
reference project in the world.

Virtual Worlds, such as Second Life, are online 3-D environments populated by
“residents” who have built graphical representations of themselves known as avatars.
Companies like IBM, Cisco, and Intel Corporations use the online world for meetings,
interviews, guest speaker events, and employee training.
Cloud Collaboration Services Google offers many online tools and services, and
some are suitable for collaboration. They include Google Drive, Google Docs, Google
Apps, Google Sites, and Google+. Most are free of charge.

Microsoft SharePoint and IBM Notes Microsoft SharePoint is a browser-based

collaboration and document management platform, combined with a powerful search
engine that is installed on corporate servers.

Enterprise Social Networking Tools The tools we have just described include
capabilities for supporting social business, but there are also more specialized social tools
for this purpose, such as Sales force Chatter, Microsoft Yammer, Jive, and IBM
Connections.
Chapter- 3
Information systems, Organizations and Strategy

Question: a) How information technologies influence organization? Marks: 04

Solution: Information systems and organizations influence one another.

Information systems are built by managers to serve the interests of the business firm. At
the same time, the organization must be aware of and open to the influences of
information systems to benefit from new technologies.
The interaction between information technology and organizations is complex and
is influenced by many mediating factors, including the organization’s structure, business
processes, politics, culture, surrounding environment, and management decisions.

Question: b) Describe disruptive technologies. Marks: 03

Solution:
Riding the Wave Sometimes a technology and resulting business innovation come along
to radically change the business landscape and environment. These innovations are
loosely called “disruptive”. Disruptive technologies are substitute products that perform
as well as or better (often much better) than anything currently produced. The car
substituted for the horse-drawn carriage, the word processor for typewriters, and the
Apple iPod for portable CD players, and digital photography for process film
photography.
In these cases, entire industries were put out of business. In other cases, disruptive
technologies simply extend the market, usually with less functionality and much less cost
than existing products. Eventually they turn into low-cost competitors for whatever was
sold before. Disk drives are an example: Small hard disk drives used in PCs extended the
market for disk drives by offering cheap digital storage for small files. Eventually, small
PC hard disk drives became the largest segment of the disk drive marketplace.

Question: c) Describe Porter’s competitive forces model with figure. (This question will
appear in the exam)

Solution: Arguably, the most widely used model for understanding competitive
advantage is Michael Porter’s competitive forces model (see Figure 3. 8). This model
provides a general view of the firm, its competitors, and the firm’s environment.

 Figure is a must

Traditional Competitors All firms share market space with other competitors
who are continuously devising new, more efficient ways to produce by introducing
new products and services, and attempting to attract customers by developing their
brands and imposing switching costs on their customers.

New Market Entrants In a free economy with mobile labor and financial
resources, new companies are always entering the marketplace. In some industries,
there are very low barriers to entry, whereas in other industries, entry is very
difficult.
 Substitute Products and Services In just about every industry, there are
substitutes that your customers might use if your prices become too high. New
technologies create new substitutes all the time. Ethanol can substitute for gasoline
in cars; vegetable oil for diesel fuel in trucks; and wind, solar, coal, and hydro
power for industrial electricity generation.

Customers A profitable company depends in large measure on its ability to attract

and retain customers (while denying them to competitors) and charge high prices.
The power of customers grows if they can easily switch to a competitor’s products
and services or if they can force a business and its competitors to compete on price
alone in a transparent marketplace where there is little product differentiation and
all prices are known instantly (such as on the Internet).

Suppliers The market power of suppliers can have a significant impact on firm
profits, especially when the firm cannot raise prices as fast as can suppliers. The
more different suppliers a firm has, the greater control it can exercise over
suppliers in terms of price, quality, and delivery schedules. For instance,
manufacturers of laptop PCs almost always have multiple competing suppliers of
key components, such as keyboards, hard drives, and display screens.

Question: d) Business Value Chain Model ?

Solution: The value chain model highlights specific activities in the business
where competitive strategies can best be applied ( Porter, 1985 ) and where information
systems are most likely to have a strategic impact. This model identifies specific, critical
leverage points where a firm can use information technology most effectively to enhance
its competitive position. The value chain model views the firm as a series or chain of
basic activities that add a margin of value to a firm’s products or services. These
activities can be categorized as either primary activities or support activities.
Primary activities are most directly related to the production and distribution of
the firm’s products and services, which create value for the customer. Primary activities
include inbound logistics, operations, outbound logistics, sales and marketing, and
service. Inbound logistics includes receiving and storing materials for distribution to
production. Operations transform inputs into finished products. Outbound logistics entails
storing and distributing finished products. Sales and marketing includes promoting and
selling the firm’s products. The service activity includes maintenance and repair of the
firm’s goods and services.

Support activities make the delivery of the primary activities possible and consist
of organization infrastructure (administration and management), human resources
(employee recruiting, hiring, and training), technology (improving products and the
production process), and procurement (purchasing input).
  Figure is a must

Question: e) What are the features of organization? Explain the features.

Solution: The organization is devoted to the principle of efficiency: maximizing output

using limited inputs. Other features of organizations include their business processes,
organizational culture, organizational politics, surrounding environments, structure,
goals, constituencies, and leadership styles. All of these features affect the kinds of
information systems used by organizations.

Routines and Business Processes All organizations, including business firms, become
very efficient over time because individuals in the firm develop routines for producing
goods and services. Routines—sometimes called standard operating procedures—are
precise rules, procedures, and practices that have been developed to cope with virtually
all expected situations.
Organizational Politics People in organizations occupy different positions with different
specialties, concerns, and perspectives. As a result, they naturally have divergent
viewpoints about how resources, rewards, and punishments should be distributed. These
differences matter to both managers and employees, and they result in political struggle
for resources, competition, and conflict within every organization.

Organizational Culture All organizations have bedrock, unassailable, unquestioned (by

the members) assumptions that define their goals and products. Organizational culture
encompasses this set of assumptions about what products the organization should
produce, how it should produce them, where, and for whom. Generally, these cultural
assumptions are taken totally for granted and are rarely publicly announced or discussed.

Organizational Environments Organizations reside in environments from which they

draw resources and to which they supply goods and services. Organizations and
environments have a reciprocal relationship. On the one hand, organizations are open to
and dependent on the social and physical environment that surrounds them.

Organizational Structure All organizations have a structure or shape. Mintzberg’s

classification identifies five basic kinds of organizational structure. In small
entrepreneurial firms, we will often find poorly designed systems developed in a rush that
often quickly outgrows their usefulness. In huge multidivisional firms operating in
hundreds of locations, we will often find there is not a single integrating information
system, but instead each locale or each division has its set of information systems.

May you succeed outstandingly in the exam.